When financial information is measured and reported in a similar manner across different companies in the same industry it is
A)consistent.
B)comparable.
C)neutral.
D)faithfully representeD.

Question

Quizplus · Accepted Answer

The term "comparable" refers to the ability to compare financial information between companies in the same industry that have used similar accounting methods or reporting standards. This allows for a more accurate analysis of financial performance and makes it easier to identify trends or differences between companies. Consistency is also important, but it refers to the use of the same accounting methods and standards within a company over time. Neutral and faithful representation are concepts related to the accuracy and completeness of financial reporting, but they do not specifically relate to comparability between companies.

When Financial Information Is Measured and Reported in a Similar